This bill amends various sections of the Louisiana Revised Statutes to repeal the corporation franchise tax and related provisions, effectively streamlining the state's tax structure. Key changes include the removal of references to the corporation franchise tax in multiple tax credit sections, allowing tax credits to be applied solely against Louisiana income tax. The bill also repeals the automatic corporation franchise tax rate reduction and provisions regarding corporations that are not subject to the franchise tax. Additionally, it clarifies that tax credits previously applicable to both income and corporation franchise taxes will now only apply to income taxes, including credits for donations to public schools and playgrounds, as well as for research and development activities.

Furthermore, the bill introduces new provisions for refundable tax credits for child care providers and employment incentives for businesses hiring individuals from public assistance programs. It establishes a tiered credit system based on the type of employee hired and the industry, while also setting limits on the number of credits an employer can claim. The bill specifies that excess credits can be carried forward for up to five years and clarifies that all entities taxed as corporations must claim credits on their corporation income tax returns. Overall, the bill aims to enhance the efficiency of tax credit applications and promote economic development through targeted incentives, with the new provisions set to take effect on January 1, 2026.

Statutes affected:
HB3 Original: 47:750(E)(1), 47:6005(C)(1), 47:6006(A), 47:1(A), 47:6008(A), 47:6013(A), 47:6014(A), 47:6015(B)(1), 47:6017(A), 47:6018(B), 47:6019(A)(1), 47:6020(D)(2), 47:6022(E)(1), 47:6028(C), 47:6032(A), 47:6033(C), 47:6036(C)(1), 47:6105(A), 47:6107(A), 47:6108(A), 51:1787(A)(2), 51:3(A)(1), 47:3204(H)(1), 47:4305(B)(1)
HB3 Engrossed: 47:750(E)(1), 47:6005(C)(1), 47:6006(A), 47:1(A), 47:6008(A), 47:6013(A), 47:6014(A), 47:6015(B)(1), 47:6017(A), 47:6018(B), 47:6019(A)(1), 47:6020(D)(2), 47:6022(E)(1), 47:6028(C), 47:6032(A), 47:6033(C), 47:6036(C)(1), 47:6105(A), 47:6107(A), 47:6108(A), 51:1787(A)(2), 51:3(A)(1), 47:3204(H)(1), 47:4305(B)(1)
HB3 Reengrossed: 47:750(E)(1), 47:6005(C)(1), 47:6006(A), 47:1(A), 47:6008(A), 47:6013(A), 47:6014(A), 47:6015(B)(1), 47:6017(A), 47:6018(B), 47:6019(A)(1), 47:6020(D)(2), 47:6022(E)(1), 47:6028(C), 47:6032(A), 47:6033(C), 47:6036(C)(1), 47:6105(A), 47:6107(A), 47:6108(A), 51:1787(A)(2), 51:3(A)(1), 47:3204(H)(1), 47:4305(B)(1)
HB3 Enrolled: 47:750(E)(1), 47:6005(C)(1), 47:6006(A), 47:1(A), 47:6008(A), 47:6013(A), 47:6014(A), 47:6015(B)(1), 47:6017(A), 47:6018(B), 47:6019(A)(1), 47:6020(D)(2), 47:6022(E)(1), 47:6028(C), 47:6032(A), 47:6033(C), 47:6036(C)(1), 47:6105(A), 47:6107(A), 47:6108(A), 51:1787(A)(2), 51:3(A)(1), 47:3204(H)(1), 47:4305(B)(1)
HB3 Act 6: 47:750(E)(1), 47:6005(C)(1), 47:6006(A), 47:1(A), 47:6008(A), 47:6013(A), 47:6014(A), 47:6015(B)(1), 47:6017(A), 47:6018(B), 47:6019(A)(1), 47:6020(D)(2), 47:6022(E)(1), 47:6028(C), 47:6032(A), 47:6033(C), 47:6036(C)(1), 47:6105(A), 47:6107(A), 47:6108(A), 51:1787(A)(2), 51:3(A)(1), 47:3204(H)(1), 47:4305(B)(1)